At the beginning of 2006, Oslo Co. had the following account balances:
Assets...............................$10,000
Liabilities ..............................6,000
Common stock .....................3,000
Retained Earnings ...............1,000
During 2006 the following cash events occurred:
a. Provided services to customers for $8,000.
b. Repaid $2,000 of debt.
c. Owners invested an additional $3,000 in the business.
d. Incurred operating expenses of $5,000.
e. Dividends amounted to $1,000.
1. Oslo's net income for 2006 was:
a. $1,000
b. $2,000
c. $3,000
d. $4,000
2. Total assets at the end of 2006 are:
a. $ 3,000
b. $13,000
c. $15,000
d. $18,000
3. Total liabilities at the end of 2006 are:
a. $ 0
b. $4,000
c. $6,000
d. $8,000
4. Retained earnings at the end of 2006 are:
a. $1,000
b. $2,000
c. $3,000
d. $4,000